Kansai Nerolac Paints Q3 results: Net profit rises 39.6% to Rs 152 cr

Kansai Nerolac Paints Ltd on Monday reported a 39.57 per cent increase in consolidated net profit to Rs 152.09 crore for the December quarter, helped by improvement in margins.

The company had posted a net profit of Rs 108.97 crore in the October-December period a year ago, Kansai Nerolac said in a regulatory filing.

Its revenue from operations was up 5 per cent to Rs 1,918.71 crore in the third quarter of the ongoing fiscal from Rs 1,826.81 crore in the year-ago period.

Total expenses of Kansai Nerolac Paints were up 2.72 per cent to Rs 1,730.61 crore in the December quarter.

Commenting on the results, Managing Director Anuj Jain said, "The quarter saw good demand for industrial coatings. Decorative demand was also good as it registered double-digit volume growth, driven by the festive season."

Raw material prices were stable despite volatility in crude.

"Gross margins improved over the corresponding quarter last year. The company continues to see traction as regards to initiatives in the areas such as feet-on-street, digital, influencer outreach, new product launches, approvals, and projects," he said.

On the outlook, Jain said as the general elections are approaching, rural demand is expected to pick up, which should support overall volume demand in the near term.

However, he said, "Given the evolving geo-political situation, raw material prices may experience volatility."

Shares of Kansai Nerolac Paints Ltd on Monday settled at Rs 343.90 on the BSE, up 1.03 per cent from its previous close.